The share price of Protean eGov Technologies slammed into the 20% lower circuit today, May 19, locking out sellers. The sharp decline in the share price of the company came after its announcement over the weekend that it failed to advance to the next round of the Income Tax Department’s high‑profile PAN 2.0 tender.
What is PAN 2.0 and why it matters
The Income Tax Department wants to overhaul the technology backbone for issuing and managing PAN and TAN cards. With a budget of roughly Rs 1,440 crore, the PAN 2.0 project covers design, development, implementation, operations, and long‑term maintenance. Landing the mandate would have cemented Protean’s place at the centre of India’s tax‑tech landscape for years.
Protean’s miss and management’s take
Protean, through an exchange filing, said that it had bid to become the project’s Managed Service Provider but was “not considered for the next stage.” The company, through the filing, said that the new platform “appears to have limited or minimal impact” on its current PAN processing work under the existing contract, yet the market clearly feared otherwise.
Equirus on Protean
According to a report by brokerage firm Equirus, PAN-related services contribute nearly half of Protean eGov’s total revenue. While the impact on FY26 earnings may be limited, the brokerage expects a significant decline of 75-100% in this revenue stream over the next two to three years. This sharp fall could lead to an overall 35% drop in revenue by FY27, putting the company’s financial stability under pressure.
As per Equirus, the free cash flow that previously supported new initiatives is now under threat, especially as other business segments like ONDC retail volumes remain stagnant. Citing these concerns, the brokerage downgraded the stock from “Add” to “Sell” and sharply cut its price target from Rs 1,730 to Rs 900.
Protean share performance
Protean share price has seen a sharp downward trend, culminating in a 20% lower circuit on Monday. The stock had already dropped around 15% in the past five days, while shedding 22% over both the past month and the last six months.